Do I Need To Extend My Warranty?
An extended warranty covers car repairs and services for a specific amount of time and can possibly save you thousands of dollars. At first glance getting an extended warranty seems like a sensible idea because you never know when something can go wrong with your car but you shouldnt jump into an extended warranty without doing your research.
First consider whether you need extended coverage. When you purchase a car from a dealership theres always some type of warranty included. If the car has a significant problem it will most likely come to light soon after youve purchased it; by then it will still be covered by the dealership or manufacturer warranty. Its best to get a sense of how the car performs during the regular warranty period and to consider extra coverage if it looks like your car will have issues later on. However there are other things to keep in mind based on your situation.
An extended warranty can come in handy if:
You dont know that much about cars and think youll have the car checked frequently.
Your car requires expensive parts or specialized services.
You plan on keeping your car for a long time.
You are not prepared to pay huge repair bills.
You would like to have tow service available when you need it.
The downside of an extended warranty is that you will lose your money if your car never has any significant issues. Its a bit of a gamble but if you research the make and model of your car and assess the likelihood of encountering an expensive problem you can make an informed decision. If you decide to inquire about an extended warranty these are some questions you should ask:
What is covered?
What is not covered?
Can you take the car to any shop or do you have to use a specific service center?
Is there ever a deductible?
Is tow service provided? Is it a 24 hour service? Is there a limit to how many times you can be towed?
How does the claims process work? Do you have to pay for services out of pocket and then apply to be reimbursed? How long does it take to be reimbursed?
Is this policy transferrable?
If you decide to get an extended warranty for your car make sure you research the company providing the extended warranty to make sure its not a scam. There are many fly by night operations out there offering extended warranties that are bogus. You can check the companys status with the Better Business Bureau and you can request proof of licensing and bonding to make sure the company is legitimate. Whatever you do make sure you read all of the fine print and ask as many questions as possible. Some plans dont cover certain items and you dont want to assume anything; assumptions wont tow your car to the nearest service station or pay for a windshield replacement!
About the writer: Enjoy your car and find the best deal on the insurance coverage you need. Visit us for moneysaving tips free auto insurance comparisons and affordable insurance advice at Auto Insurance Rates Direct.
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